The Carlyle Group Inc.
12/16/2024 | Press release | Distributed by Public on 12/16/2024 07:30
Carlyle Agrees to Sell Forgital Group to Stonepeak
Milan & Velo D'Astico, 16 December 2024 - Global investment firm Carlyle (NASDAQ: CG) has agreed to sell Forgital Group ("Forgital"), a provider of advanced aerospace and industrial forged products, to Stonepeak.
Forgital is a leading integrated European manufacturer specialising in the forging, laminating and machining of rolled rings with technologically advanced manufacturing capabilities across a broad portfolio of materials, including titanium, nickel-based alloys, aluminium, and steel. The company serves a diverse range of end markets, including aerospace, defence, space, power generation, and oil & gas, and offers vertical integration across the entire forged components value chain, from process engineering to assembly, final machining, and testing. Founded in 1873 by the Spezzapria family and headquartered in Italy, the business has facilities in Italy, France, and the US, and over 1,100 employees. Its products are sold to clients in over 40 countries.
During its ownership period, Carlyle worked in partnership with the company's leadership to expand and institutionalise the management team, reposition the business during the significant impact of Covid-19 through operational and efficiency initiatives, improve procurement and functional processes throughout the business, significantly grow the order book and diversify the customer base by developing new product offerings in adjacent segments and platforms, and gain customers in new verticals.
Marco De Benedetti, Chairman of Italy at Carlyle, said: "We are pleased to have supported Forgital through such a transformative period for the business. As a result of the investment, partnership, and the team's sector expertise, we believe Forgital is well-placed to capitalise from long-term growth in its key end markets of aerospace & defence and industrial applications, and I have no doubt the business will continue to build upon its strong position today as a European leader in specialised forged products."
Meddah Hadjar, CEO of Forgital, said: "I would like to thank the Carlyle team for their invaluable support, expertise and guidance over the last few years, which have been a significant period of change and development for Forgital. Stonepeak represents an ideal partner for the next stage of Forgital's growth, bringing deep experience, global relationships, and operational expertise within sectors and businesses that are mission-critical to the supply chain. We are excited to leverage these resources to support our customers, and to partner with Conor and the rest of the Stonepeak team as we continue to develop Forgital's manufacturing excellence and global capabilities."
Conor Sutherland, Managing Director at Stonepeak, said: "Forgital is an integral link in the global aerospace supply chain, and a trusted partner to leading aerospace manufacturers and industrial customers. We have high conviction in long-term aerospace end market demand and believe Forgital is positioned to benefit from these tailwinds. We admire Forgital's strong business model, manufacturing excellence and distinguished reputation among its customers for quality and reliability. We are thrilled to make this investment and partner with Forgital's dedicated management team and talented workforce to support Forgital's continued success."
The transaction is expected to close in the second quarter of 2025 and is subject to customary regulatory approvals.
J.P. Morgan Securities Plc acted as advisor to Carlyle and sole financial advisor on the transaction. Latham & Watkins LLP served as legal counsel to Carlyle. Zulli, Tabanelli, e Associati and Perris e Associati served as financial advisors to Spezzapria family minority shareholders. Simpson Thacher & Bartlett LLP, Legance - Avvocati Associati, Hogan Lovells International LLP, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Stonepeak.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across its business and conducts its operations through three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $447 billion of assets under management as of September 30, 2024, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,300 people in 29 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group.
About Forgital
Forgital is a leading, vertically integrated Group focused on the manufacturing of seamless rolled rings in rectangular or profiled sections, as well as assembled fan modules, covering the largest range of sizes. Forgital specializes in forging rolled rings, with technologically advanced capabilities across a broad range of materials, including titanium, nickel and cobalt alloys, carbon steel, alloy steel, stainless steel and aluminium. Forgital's Compact Supply Chain simplifies the production process of its customers through an integrated system of technologies and services which encompasses all the steps of the project: from the pre-processing to the post-processing phase (including finishing, welding and macroetching).
About Stonepeak
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $70 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, with a focus on downside protection and strong risk-adjusted returns. Stonepeak, as sponsor of private equity and credit investment vehicles, provides capital, operational support, and committed partnership to grow investments in its target sectors, which include digital infrastructure, energy and energy transition, transport and logistics, and real estate. Stonepeak is headquartered in New York with offices in Houston, London, Hong Kong, Seoul, Singapore, Sydney, Tokyo, and Abu Dhabi. For more information, please visit www.stonepeak.com.
Media
Carlyle
Nicholas Brown
+44 7471 037 002
Forgital
Mara Rezzadore
+39 0445 731322
Stonepeak
Kate Beers / Maya Brounstein
+1 (646) 540-5225